Capital Gains Rates — FY 2026-27
- •LTCG: 12.5% across almost every asset class, without indexation.
- •STCG on listed equity: 20% (Section 111A). Other short-term gains are taxed at your slab rate.
- •Equity LTCG has a ₹1.25 lakh annual exemption (Section 112A).
- •Holding period: 12 months for listed shares and equity funds, 24 months for property, gold and unlisted shares.
- •Debt funds bought on or after 1 April 2023 are always short-term, taxed at slab rate however long you hold them.
The Real Problem This Solves
Budget 2024 rewrote capital gains taxation from 23 July 2024, and most of the guidance still circulating online quotes the old rules — 10% equity LTCG, a ₹1 lakh exemption, 20%-with-indexation on everything long-term. Those numbers are wrong now, and using them will understate what you owe.
The harder question is property. If you bought land or a building before 23 July 2024, you get a one-time choice between the new flat 12.5% and the old 20%-with-indexation, and you may take whichever is cheaper. Which one wins depends entirely on how much the property actually appreciated — there is no rule of thumb. This calculator computes both and tells you.
How the Tax Is Calculated
Start with the net gain: sale price − purchase price − transfer expenses. Classify it as short- or long-term by holding period, apply the rate, then add 4% health and education cess.
Equity example: ₹10 lakh of shares sold for ₹15 lakh after three years is a ₹5 lakh long-term gain. Subtract the ₹1.25 lakh exemption to get ₹3.75 lakh taxable, at 12.5% = ₹46,875, plus 4% cess = ₹48,750.
Property example: bought June 2015 for ₹50 lakh, sold June 2026 for ₹90 lakh. The flat route taxes the full ₹40 lakh gain at 12.5% = ₹5.20 lakh with cess. The indexation route lifts the cost to ₹50 lakh × (384 ÷ 254) = ₹75.59 lakh, leaving a ₹14.41 lakh gain taxed at 20% = ₹2.99 lakh with cess. Here indexation saves ₹2.20 lakh.
But push the same sale price to ₹1.2 crore and it flips: flat costs ₹9.10 lakh against ₹9.24 lakh indexed. The crossover for this property sits at about ₹1.18 crore — the faster the asset appreciated, the more the flat 12.5% wins.
| Asset | Long-term after | LTCG rate | STCG rate |
|---|---|---|---|
| Listed shares & equity mutual funds (STT paid) | 12 months | 12.5% above ₹1.25 lakh | 20% |
| Property (land or building) | 24 months | 12.5% (or 20% indexed if bought before 23 Jul 2024) | Slab rate |
| Gold, unlisted shares & other assets | 24 months | 12.5% | Slab rate |
| Debt / specified funds bought on or after 1 Apr 2023 | Never long-term | — | Slab rate |
Frequently Asked Questions
Can I still claim indexation on property?
Only if you acquired the land or building before 23 July 2024, and only if you are a resident individual or HUF. In that case Section 112 lets you pay the lower of 12.5% without indexation or 20% with it. Property bought on or after 23 July 2024 gets the flat 12.5% rate with no indexation option, and indexation is gone entirely for equity, mutual funds, gold and unlisted shares.
If indexation turns my gain into a loss, can I carry that loss forward?
No. The indexation route works as a cap on your tax, not as a separate computation of income. If the indexed cost exceeds your sale price, the effect is that your tax under that route is nil — but you cannot report a long-term capital loss on that basis or carry it forward. Your actual gain or loss is still the one computed without indexation.
Why is my debt mutual fund taxed at slab rate even after five years?
Section 50AA, introduced from 1 April 2023, treats units of specified mutual funds — broadly, funds with 35% or less in domestic equity — as short-term capital assets regardless of holding period. There is no long-term benefit and no indexation. Units you bought before 1 April 2023 follow the older rules and can still qualify as long-term after 24 months.
Does the ₹1.25 lakh exemption apply per transaction or per year?
Per financial year, and it applies only to long-term gains on listed equity and equity mutual funds under Section 112A. All such gains across the year are aggregated first, then the exemption is applied once against the total. It does not apply to property, gold, debt funds, or any short-term gain.
What does this calculator not cover?
Surcharge, which applies at higher income levels and can materially raise the bill; exemptions under Sections 54, 54F and 54EC for reinvesting the proceeds in a house or specified bonds; set-off of losses carried forward from earlier years; and the special rules for non-residents. It also assumes property acquired after 1 April 2001 — for anything older, the fair market value as on 1 April 2001 may be substituted as the cost.